Gov. Jim Doyle will ask the Legislature to let local governments raise their fall property tax levies by 4% – double the limit of the past two years, but a rate the governor said would still control local taxes.
He also said his plan would impose tight limits to protect homeowners, who now pay about 71% of all property taxes. In 1990, homeowners paid 60% of the property tax burden.
Last year, property taxes in the state hit a record $8.7 billion. Two state credits lowered the total that property owners had to pay to $7.9 billion.
Levy controls that expired on Jan. 1 limited local governments to increases of 2% a year or the growth in new construction in their communities, whichever was greater. That allowed Milwaukee, where new construction grew by 3.3%, and other local governments with similar growth to raise their levies by more than 2% last year.
Public school spending is controlled by separate formulas. Partly because of the passage of so many local referendums, the average statewide levy for public schools rose 5.4% last year, according to the non-partisan Wisconsin Taxpayers Alliance.
Wisconsin Resident’s Total 2006 Tax Rate: 33.4% of Income according to WISTAX:
For the third consecutive year, total taxes paid by Wisconsin individuals and firms relative to personal income increased in 2006. They now claim 33.4% of income, up from a 2003 low of 30.7%. Both the federal and state tax burdens increased in 2006, while the local government burden dipped slightly.